How Does a Deductible Affect a Car Insurance Policy Premium?

In Florida, every vehicle with a current registration must be insured. However, there are many car insurance companies to choose from, and each one offers several types of deals. Drivers can choose the extent of insurance, the deductible, and the amount covered. Today, we’ll have a closer look at how deductibles affect car insurance quotes.

How Does a Deductible Affect Car Insurance Quotes?

The deductible is the amount you have to pay before your insurance kicks in. A typical car insurance deductible is $500. If you damage someone else’s vehicle while driving, you have to pay the first $500 out of pocket. The rest of the outstanding amount is paid by your insurance policy.

Many insurers have several deductible options. If you want to pay less, you can choose a $250 deductible. However, this increases the cost of your premium, so you’ll pay more every month. If you’d rather pay a lower premium, you can increase your deductible to $1,000 or even $2,000.

What Is the Best Deductible for Car Insurance? 

Because every driver has unique needs and financial goals, it’s hard to determine the best deductible. People who don’t have significant savings and would struggle to pay hundreds of dollars after an accident might benefit from a lower deductible. Although this means that they have to pay more each month, it reduces their risk.

On the other hand, those with significant assets can save money by choosing a higher deductible, especially if they are responsible, low-risk drivers. The easiest way to find out more about deductibles is to reach out to an insurance agent at DTRT. They can give you personalized advice.

Drivers who choose a high deductible typically pay less for car insurance. However, the highest deductible isn’t always the best. Send us a message at DTRT Insurance to find out more about vehicle insurance in your area. We’ll help you find a reasonably priced quote that suits your financial situation.